Indian Economy News

MRO services in India to grow to Rs. 53,392 crore (US$ 5.7 billion) by 2030

  • IBEF
  • March 23, 2026

India’s Maintenance, Repair and Overhaul (MRO) sector is poised for steady expansion, with demand projected to rise from Rs. 38,350 crore (US$ 4.4 billion) in 2025 to Rs. 53,392 crore (US$ 5.7 billion) by 2030, reflecting an annual growth rate of about 5.4%. This growth is being driven by the rapid expansion of India’s commercial aircraft fleet, which is expected to exceed 1,800 aircraft by the end of the decade, alongside increasing air traffic and fleet modernisation. As airlines continue to induct new aircraft, the need for regular maintenance, repair, and component overhaul services is rising significantly, creating a strong domestic demand base for MRO services. Additionally, the shift towards narrow-body aircraft and higher aircraft utilisation rates is further accelerating maintenance requirements across the aviation ecosystem.

Government initiatives and policy support are also playing a crucial role in strengthening the domestic MRO industry. Measures such as rationalised taxation, improved airport infrastructure, and efforts to reduce dependence on overseas maintenance are helping boost local capabilities and cost competitiveness. Historically, a significant portion of India’s MRO work has been outsourced abroad, leading to higher costs and longer service completion times. However, increasing investments and policy reforms are encouraging airlines to shift maintenance operations within the country. The emergence of global partnerships, new MRO facilities, and enhanced technical expertise is expected to position India as a regional hub for aircraft maintenance. With a strong growth trajectory supported by fleet expansion, policy push, and infrastructure development, the MRO sector is set to become a key pillar of India’s aviation ecosystem by 2030. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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